DoD Awards Lockheed Martin $422.8M for ADPE System Configuration, Ending 2007
Contract Overview
Contract Amount: $422,775,914 ($422.8M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 1996-10-23
End Date: 2007-09-30
Contract Duration: 3,994 days
Daily Burn Rate: $105.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: 199712!5700!0149!GV41 !ESC/AVK !F1962895C0143 !A!*!P00098 !19970505!20010930!055369748!055369748!834951691!N!60854!LOCKHEED MARTIN CORPORATION !1670 N NEWPORT RD !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !0001!+000000668353!N!N!000000000000!7010!ADPE SYSTEM CONFIGURATION !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !3663!3!*!*!B!B!N!Z!A !N!R!2!002!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $422.8 million to LOCKHEED MARTIN CORPORATION for work described as: 199712!5700!0149!GV41 !ESC/AVK !F1962895C0143 !A!*!P00098 !19970505!20010930!055369748!055369748!834951691!N!60854!LOCKHEED MARTIN CORPORATION !1670 N NEWPORT RD !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL PAS… Key points: 1. Significant contract value of $422.8 million awarded to a single large defense contractor. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. Contract duration of nearly 10 years (1997-2007) indicates a long-term need. 4. Sector is IT/Electronics, a critical area for defense operations.
Value Assessment
Rating: fair
The contract value of $422.8 million over nearly 10 years suggests a substantial investment. Without specific unit cost data or comparison points for similar ADPE system configurations, a precise value assessment is difficult. However, the Cost Plus Award Fee structure implies performance incentives, which can influence final costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the long duration and specific nature of the ADPE system configuration might have limited the number of truly competitive bids.
Taxpayer Impact: While competition was sought, the large contract value and long term mean significant taxpayer funds are committed. The effectiveness of the competition in securing the best possible price over the contract's life is a key consideration.
Public Impact
Impacts Department of Defense IT infrastructure and electronic systems. Supports national defense capabilities through advanced equipment. Long-term commitment of funds for a specific technology solution. Potential for follow-on contracts or upgrades based on this system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns or obsolescence.
- Cost Plus Award Fee can incentivize spending if not tightly managed.
- Lack of specific unit cost data hinders detailed value analysis.
Positive Signals
- Awarded under full and open competition.
- Contractor is a major defense industry player with proven capabilities.
- Clear end date provides a defined project lifecycle.
Sector Analysis
This contract falls within the Information Technology and Electronics sector, specifically related to Defense. Spending in this area is crucial for modern military operations, encompassing hardware, software, and communication systems. Benchmarks for similar large-scale ADPE system configurations are difficult to ascertain without more specific details on the system's scope and complexity.
Small Business Impact
The contract was awarded to Lockheed Martin Corporation, a large prime contractor. There is no indication in the provided data whether small businesses were involved as subcontractors. Large defense contracts often have subcontracting goals, but this information is not present here.
Oversight & Accountability
The data indicates the contract was managed by the Defense Contract Management Agency (DCMA). Oversight would typically involve monitoring performance, cost, and compliance throughout the contract's lifecycle to ensure accountability and taxpayer value.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (nearly 10 years).
- Cost Plus Award Fee contract type.
- Lack of detailed performance metrics or unit cost data.
- Potential for technology obsolescence over the contract term.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, co, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $422.8 million to LOCKHEED MARTIN CORPORATION. 199712!5700!0149!GV41 !ESC/AVK !F1962895C0143 !A!*!P00098 !19970505!20010930!055369748!055369748!834951691!N!60854!LOCKHEED MARTIN CORPORATION !1670 N NEWPORT RD !COLORADO SPRIN !CO!80916!16000!041!08!COLORADO SPRINGS !EL PASO !COLORADO !0001!+000000668353!N!N!000000000000!7010!ADPE SYSTEM CONFIGURATION !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !3663!3!*!*!B!B!N!Z!A !N!R!2!0
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $422.8 million.
What is the period of performance?
Start: 1996-10-23. End: 2007-09-30.
What specific ADPE system components and functionalities were included in this contract, and how do they align with current defense needs?
The provided data identifies the contract as being for 'ADPE SYSTEM CONFIGURATION' under PSC 7010. ADPE typically refers to Automatic Data Processing Equipment. Without further details, it's impossible to specify the exact components (e.g., servers, networking gear, specialized hardware) or functionalities. The alignment with current defense needs would depend on the system's role in command, control, intelligence, or logistics, which are not detailed here.
Given the Cost Plus Award Fee structure and the long duration, what mechanisms were in place to control costs and ensure efficient performance?
Cost Plus Award Fee (CPAF) contracts allow for reimbursement of costs plus a fee that is based on performance. To control costs and ensure efficiency, the contract would have defined performance metrics and award fee criteria. Robust oversight by the DCMA, including regular audits and performance reviews, would be crucial to ensure Lockheed Martin met objectives and managed costs effectively within the contract's framework.
How did the 'full and open competition' process ensure the best value for taxpayers, considering the specialized nature of the ADPE system?
Full and open competition aims to maximize the pool of potential bidders, theoretically leading to better pricing and innovation. For a specialized ADPE system, the effectiveness depends on whether the solicitation clearly defined requirements and evaluation criteria to attract qualified bidders while allowing for competitive proposals. The long-term nature and potential complexity might mean that only a few firms could realistically compete, making the initial bid evaluation and subsequent contract management critical for ensuring taxpayer value.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 1670 N NEWPORT RD, COLORADO SPRIN, CO, 80916
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1996-10-23
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2019-05-02
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